Las Vegas Sands Announces A Resort Complex in Madrid

By RAPHAEL MINDER

Published: September 10, 2012

MADRID -- Sheldon G. Adelson, the American billionaire casino magnate, is set to build a giant gaming and leisure resort on the outskirts of Madrid, ending a lengthy bidding battle between the Spanish capital and Barcelona, the country's second-largest city.

But the project, called EuroVegas, remains clouded in uncertainty. Mr. Adelson's company, Las Vegas Sands, offered few clues on how it would be financed amid a deepening recession and banking crisis in Spain, how big it would be or where it would be situated.

In a statement issued Friday, Sands said the project was in an early stage and still dependent on how the euro zone debt crisis evolved. ''Progress toward resolution of the current economic challenges within Europe will be an important consideration,'' the company said. Sands is hoping to limit its contribution to 25 to 35 percent of the equity of EuroVegas, and said it would explore ''financing options from the capital markets for the project.''

Mr. Adelson repeatedly delayed a final choice between Madrid and Barcelona, intensifying the tussle between the two cities, which each sent delegations to Las Vegas this year. ''Barcelona is an outstanding tourism destination, and choosing Madrid over Barcelona was not an easy selection,'' he said on Friday.

Underscoring the fierce rivalry between Spain's two largest cities, the regional authorities of Catalonia, whose capital is Barcelona, unexpectedly presented on Friday a casino and theme park project of their own, called Barcelona World, which is set to be built at a cost of 4.8 billion euros, or $6.1 billion, near one of Spain's most successful existing theme parks, PortAventura.

Barcelona World will occupy land now owned by La Caixa, a Barcelona-based savings bank, and the project is being led by Veremonte, a Spanish property developer. The exact financing is also yet to be determined.

EuroVegas, however, remains a more ambitious project, as well as a gamble by Mr. Adelson that he can repeat in recession-hit Europe the success he has enjoyed in Las Vegas and Macau.

In recent months, Sands executives have presented EuroVegas as a giant resort that will have 12 hotels with a total of 36,000 rooms, six casinos with 18,000 slot machines, and three golf courses. On Friday, however, the company said it still needed to determine the exact size and location of EuroVegas.

Mr. Adelson and other Sands executives have visited three locations around Madrid, all of which have plots of land that have stood empty since the start of the world financial crisis and the collapse of Spain's property market.

Mr. Adelson emphasized the enthusiasm that his project has generated in Spain, at a time when the country has struggled to convince most investors that it will not be forced into a Greek-style bailout. ''We have met so many tremendous supporters of both cities and are thankful for the friendships we have developed,'' he said.

But his plans have run into opposition from civic groups on environmental and ethical grounds. In particular, there has been concern about how extensively authorities are prepared to change existing rules. Esperanza Aguirre, president of Madrid's regional government, recently urged the national government to make concessions requested by Mr. Adelson, including some tax exemptions and an easing of restrictions on smoking in public spaces.

Tom?G?, the regional leader of the opposition Socialist Party, said his political group would investigate whether Ms. Aguirre had agreed to any ''secret conditions'' to attract Mr. Adelson. ''The law must be equal for everybody,'' Mr. G? told EFE television on Saturday.

Some opponents also say they fear that by promoting gambling, Spain might encourage criminal activities like prostitution and money laundering.

This is a more complete version of the story than the one that appeared in print.